Musk announces big job cuts at Tesla
The company’s CEO has warned a recession in the US is “likely”
Tesla will cut 10% of its salaried workforce over the next three months, Chief Executive Elon Musk said on Tuesday. Speaking at the Qatar Economic Forum organized by Bloomberg, he also warned that a recession in the US was likely.
“A recession is inevitable at some point, as to whether there is a recession in the near term, that is more likely than not,” the head of the electric carmaker said.
Musk said earlier this month that he had a “super bad feeling” about the economy. That’s when it was first reported that he planned to slash jobs, as he believed the company was overstaffed.
According to a report by auto-focused news website Electrek, the cuts would only apply to employees on a salary, not hourly workers. In an email to company staff cited by Electrek, Musk said the layoffs would “not apply to anyone actually building cars, battery packs or installing solar.”